Kwantlen Polytechnic University received a semi-annual donation of $50,000 per year for the next fifteen years, with the first payment being received today. Given a discount rate of 5.5% compounding semi-annually, determine the present value of the donation. Select one: a. $529,482 b. $1,012,465 x c. $1,040,308 d. $1,500,000
Kwantlen Polytechnic University received a semi-annual donation of $50,000 per year for the next fifteen years, with the first payment being received today. Given a discount rate of 5.5% compounding semi-annually, determine the present value of the donation. Select one: a. $529,482 b. $1,012,465 x c. $1,040,308 d. $1,500,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:**Problem Description:**
Kwantlen Polytechnic University received a semi-annual donation of $50,000 per year for the next fifteen years, with the first payment being received today. Given a discount rate of 5.5% compounding semi-annually, determine the present value of the donation.
**Options:**
Select one:
- a. $529,482
- b. $1,012,465
- c. $1,040,308
- d. $1,500,000
(Note: Option b is marked with an "X", indicating it was selected or considered incorrect in the context provided.)
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